IC 31-40
    ARTICLE 40. JUVENILE LAW: FUNDING

IC 31-40-1
    Chapter 1. Cost of Services; Liability of Parent or Guardian toPay

IC 31-40-1-1
Application of article
    Sec. 1. This article applies to costs paid by the department undersection 2 of this chapter, including costs resulting from theinstitutional placement of a child adjudicated a delinquent child ora child in need of services.
As added by P.L.1-1997, SEC.23. Amended by P.L.146-2008,SEC.663.

IC 31-40-1-1.5
Definitions
    Sec. 1.5. (a) As used in this chapter, "costs of secure detention"includes all expenses relating to any of the following items:
        (1) Construction, repair, operation, maintenance, andadministration of a secure detention facility.
        (2) Room, board, supervision, and support services for housingat a secure detention facility of a child who has been:
            (A) taken into custody under IC 31-37-5 and placed in asecure detention facility for purposes of court proceedingsunder IC 31-37; or
            (B) placed in a secure detention facility under IC 31-37-19-6or IC 31-37-19-10.
        (3) Services provided by the department, a county probationoffice, or any service provider contracted by the department orcounty probation office if the services are provided:
            (A) to or for the benefit of the child;
            (B) under or consistent with the terms of a dispositionaldecree entered in accordance with IC 31-37-19-6 orIC 31-37-19-10; and
            (C) during the time the child is housed in a secure detentionfacility.
    (b) As used in this chapter, "secure detention facility" includes:
        (1) a juvenile detention center described in IC 31-31-8 orIC 31-31-9; or
        (2) a secure facility, including any separate unit or structure,that is:
            (A) not licensed by the department under IC 31-27; or
            (B) located outside Indiana.
    (c) As used in this chapter, "services" includes education,provision of necessary clothing and supplies, medical and dentalcare, counseling and remediation, or any other services or programsincluded in a dispositional decree or case plan ordered or approvedby the juvenile court for the benefit of a delinquent child under

IC 31-37.
As added by P.L.146-2008, SEC.664.

IC 31-40-1-1.7
Repealed
    (Repealed by P.L.2-2005, SEC.131.)

IC 31-40-1-2
Obligation of parent, guardian, or department for cost of servicesor return of child; costs of secure detention or child services
    Sec. 2. (a) Except as otherwise provided in this section andsubject to:
        (1) this chapter; and
        (2) any other provisions of IC 31-34, IC 31-37, or otherapplicable law relating to the particular program, activity, orservice for which payment is made by or through thedepartment;
the department shall pay the cost of any child services provided byor through the department for any child or the child's parent,guardian, or custodian.
    (b) The department shall pay the cost of returning a child underIC 31-37-23.
    (c) Except as provided under section 2.5 of this chapter, thedepartment is not responsible for payment of any costs of securedetention.
    (d) The department is not responsible for payment of any costs orexpenses for child services for a child if:
        (1) the juvenile court has not entered the required findings andconclusions in accordance with IC 31-34-5-3, IC 31-34-20-1,IC 31-37-6-6, IC 31-37-19-1, or IC 31-37-19-6 (whichever isapplicable); and
        (2) the department has determined that the child otherwisemeets the eligibility requirements for assistance under TitleIV-E of the federal Social Security Act (42 U.S.C. 670 et seq.).
    (e) In all cases under this title, if the juvenile court ordersservices, programs, or placements that:
        (1) are not eligible for federal assistance under either Title IV-Bof the federal Social Security Act (42 U.S.C. 620 et seq.) orTitle IV-E of the federal Social Security Act (42 U.S.C. 670 etseq.); and
        (2) have not been recommended or approved by the department;
the department is not responsible for payment of the costs of thoseservices, programs, or placements.
    (f) The department is not responsible for payment of any costs orexpenses for housing or services provided to or for the benefit of achild placed by a juvenile court in a home or facility located outsideIndiana, if the placement is not recommended or approved by thedirector of the department or the director's designee.
    (g) The department is not responsible for payment of any costs orexpenses of child services for a delinquent child under a

dispositional decree entered under IC 31-37-19, if the probationofficer who prepared the predispositional report did not submit to thedepartment the information relating to determination of eligibility ofthe child for assistance under Title IV-E of the Social Security Act(42 U.S.C. 670 et seq.), as required by IC 31-37-17-1(a)(3).
    (h) If:
        (1) the department is not responsible for payment of costs orexpenses of services, programs, or placements ordered by acourt for a child or the child's parent, guardian, or custodian, asprovided in this section; and
        (2) another source of payment for those costs or expenses is notspecified in this section or other applicable law;
the county in which the child in need of services case or delinquencycase was filed is responsible for payment of those costs andexpenses.
As added by P.L.1-1997, SEC.23. Amended by P.L.273-1999,SEC.119; P.L.146-2008, SEC.665; P.L.182-2009(ss), SEC.387.

IC 31-40-1-2.5
Payment of cost for certain services; department agreement withprobation office
    Sec. 2.5. (a) This section applies to a child who is:
        (1) adjudicated a child in need of services under IC 31-34;
        (2) a party in a pending child in need of services proceedingunder the jurisdiction of a juvenile court;
        (3) receiving services for which payment has been made by thedepartment under a case plan and a dispositional decree in thechild in need of services proceeding; and
        (4) placed in a secure detention facility by order of a juvenilecourt, based on a determination by the juvenile court that thechild committed, or that probable cause exists to believe that thechild committed, a delinquent act described in IC 31-37-1-2 ata time after adjudication in the child in need of services case.
    (b) The department may, by agreement with the probation officeof the juvenile court in which the delinquency case is pending, paythe cost of specified services for a child described in subsection (a),during the time the child is placed in a secure detention facility.
    (c) An agreement under this section must specify:
        (1) the particular services that will be paid by the departmentduring the time the child is placed in a secure detention facility;
        (2) the term of the agreement;
        (3) any procedure or limitations relating to amendment orextension of the agreement; and
        (4) any other provision that the parties consider necessary orappropriate.
    (d) The child's case plan in a child in need of services case, asprepared and approved by the department under IC 31-34-15, shallbe attached to and made a part of the agreement.
    (e) An agreement under this section:
        (1) shall be signed by:            (A) the director of the department; and
            (B) the judge of the juvenile court that ordered or approvedplacement of the child in the secure detention facility; and
        (2) may not be considered to be a contract for purposes ofIC 4-13-2.
As added by P.L.146-2008, SEC.666.

IC 31-40-1-3
Obligation of parent or guardian for cost of services provided tochild adjudicated delinquent or in need of services; child supportobligation worksheet; manner of payment
    Sec. 3. (a) A parent or guardian of the estate of:
        (1) a child adjudicated a delinquent child or a child in need ofservices; or
        (2) a participant in a program of informal adjustment approvedby a juvenile court under IC 31-34-8 or IC 31-37-9;
is financially responsible as provided in this chapter (orIC 31-6-4-18(e) before its repeal) for any services provided by orthrough the department.
    (b) Each person described in subsection (a) shall, before a hearingunder subsection (c) concerning payment or reimbursement of costs,furnish the court and the department with an accurately completedand current child support obligation worksheet on the same form thatis prescribed by the Indiana supreme court for child support orders.
    (c) At:
        (1) a detention hearing;
        (2) a hearing that is held after the payment of costs by thedepartment under section 2 of this chapter (or IC 31-6-4-18(b)before its repeal);
        (3) the dispositional hearing; or
        (4) any other hearing to consider modification of a dispositionaldecree;
the juvenile court shall order the child's parents or the guardian of thechild's estate to pay for, or reimburse the department for the cost ofservices provided to the child or the parent or guardian unless thecourt makes a specific finding that the parent or guardian is unableto pay or that justice would not be served by ordering payment fromthe parent or guardian.
    (d) Any parental reimbursement obligation under this section shallbe paid directly to the department and not to the local court clerk solong as the child in need of services case, juvenile delinquency case,or juvenile status offense case is open. The department shall keeptrack of all payments made by each parent and shall provide a receiptfor each payment received. At the end of the child in need ofservices, juvenile delinquency, or juvenile status action, thedepartment shall provide an accounting of payments received, andthe court may consider additional evidence of payment activity anddetermine the amount of parental reimbursement obligation thatremains unpaid. The court shall reduce the unpaid balance to a finaljudgment that may be enforced in any court having jurisdiction over

such matters.
    (e) After a judgment for unpaid parental reimbursement obligationis rendered, payments made toward satisfaction of the judgment shallbe made to the clerk of the court in the county where the enforcementaction is filed and shall be promptly forwarded to the department inthe same manner as any other judgment payment.
As added by P.L.1-1997, SEC.23. Amended by P.L.273-1999,SEC.120; P.L.146-2008, SEC.667; P.L.182-2009(ss), SEC.388.

IC 31-40-1-4
Obligation of parent or guardian for costs of returning child toIndiana under interstate compact on juveniles
    Sec. 4. The parent or guardian of the estate of any child returnedto Indiana under the interstate compact on juveniles underIC 31-37-23 shall reimburse the department for all costs involved inreturning the child that the court orders the parent or guardian to payunder section 3 of this chapter (or IC 31-6-4-18(e) before its repeal)whether or not the child has been adjudicated a delinquent child ora child in need of services.
As added by P.L.1-1997, SEC.23. Amended by P.L.146-2008,SEC.668.

IC 31-40-1-5
Obligation of parent or guardian for costs of institutionalplacement of child; remittance of support payments; enforcement
    Sec. 5. (a) This section applies whenever the court approvesremoval of a child from the home of a child's parent or guardian andthe department places the child in a child caring institution, a fosterfamily home, a group home, or the home of a relative of the childthat is not a foster family home.
    (b) If an existing support order is in effect, the juvenile court shallorder the support payments to be assigned to the department for theduration of the placement out of the home of the child's parent orguardian. The juvenile court shall notify the court that:
        (1) entered the existing support order; or
        (2) had jurisdiction, immediately before the placement, tomodify or enforce the existing support order;
of the assignment and assumption of jurisdiction by the juvenilecourt under this section.
    (c) If an existing support order is not in effect, the court shall dothe following:
        (1) Include in the order for out-of-home placement of the childan assignment to the department or confirmation of anassignment that occurs or is required under applicable federallaw, of any rights to support, including support for the cost ofany medical care payable by the state under IC 12-15, from anyparent or guardian who has a legal obligation to support thechild.
        (2) Order support paid to the department by each of the child'sparents or the guardians of the child's estate to be based on child

support guidelines adopted by the Indiana supreme court andfor the duration of the placement of the child out of the home ofthe child's parent or guardian, unless:
            (A) the court finds that entry of an order based on the childsupport guidelines would be unjust or inappropriateconsidering the best interests of the child and othernecessary obligations of the child's family; or
            (B) the department does not make foster care maintenancepayments to the custodian of the child. For purposes of thisclause, "foster care maintenance payments" means anypayments for the cost of (in whole or in part) providing food,clothing, shelter, daily supervision, school supplies, a child'spersonal incidentals, liability insurance with respect to achild, and reasonable amounts for travel to the child's homefor visitation. In the case of a child caring institution, theterm also includes the reasonable costs of administration andoperation of the institution as are necessary to provide theitems described in this clause.
        (3) If the court:
            (A) does not enter a support order; or
            (B) enters an order that is not based on the child supportguidelines;
        the court shall make findings as required by 45 CFR 302.56(g).
    (d) Payments in accordance with a support order assigned undersubsection (b) or entered under subsection (c) (or IC 31-6-4-18(f)before its repeal) shall be paid through the clerk of the circuit courtas trustee for remittance to the department.
    (e) The Title IV-D agency shall establish, modify, or enforce asupport order assigned or entered by a court under this section inaccordance with IC 31-25-3, IC 31-25-4, and 42 U.S.C. 654. Thedepartment shall, if requested, assist the Title IV-D agency inperforming its duties under this subsection.
    (f) If the juvenile court terminates placement of a child out of thehome of the child's parent or guardian, the court shall:
        (1) notify the court that:
            (A) entered a support order assigned to the department undersubsection (b); or
            (B) had jurisdiction, immediately before the placement, tomodify or enforce the existing support order;
        of the termination of jurisdiction of the juvenile court withrespect to the support order;
        (2) terminate a support order entered under subsection (c) thatrequires payment of support by a custodial parent or guardianof the child, with respect to support obligations that accrue aftertermination of the placement; or
        (3) continue in effect, subject to modification or enforcement bya court having jurisdiction over the obligor, a support orderentered under subsection (c) that requires payment of supportby a noncustodial parent or guardian of the estate of the child.
    (g) The court may at or after a hearing described in section 3 of

this chapter order the child's parent or the guardian of the child'sestate to reimburse the department for all or any portion of theexpenses for services provided to or for the benefit of the child thatare paid by the department during the placement of the child out ofthe home of the parent or guardian, in addition to amountsreimbursed through payments in accordance with a support orderassigned or entered as provided in this section, subject to applicablefederal law.
As added by P.L.1-1997, SEC.23. Amended by P.L.273-1999,SEC.121; P.L.145-2006, SEC.362; P.L.146-2008, SEC.669.

IC 31-40-1-6
Contracts for enforcement and collection of parentalreimbursement obligations
    Sec. 6. (a) The department may contract with any of thefollowing, on terms and conditions with respect to compensation andpayment or reimbursement of expenses as the department maydetermine, for the enforcement and collection of any parentalreimbursement obligation established by order entered by the courtunder section 3 or 5(g) of this chapter:
        (1) The prosecuting attorney of the county in which the juvenilecourt that ordered or approved the services is located or inwhich the obligor resides.
        (2) An attorney licensed to practice law in Indiana, if theattorney is not an employee of the department.
        (3) A private collection agency licensed under IC 25-11.
    (b) A contract entered into under this section is subject toapproval under IC 4-13-2-14.1.
    (c) Any fee payable to a prosecuting attorney under a contractunder subsection (a)(1) shall be deposited in the county general fundand credited to a separate account identified as the prosecutingattorney's child services collections account. The prosecutingattorney may expend funds credited to the prosecuting attorney'schild services collections account, without appropriation, only for thepurpose of supporting and enhancing the functions of the prosecutingattorney in enforcement and collection of parental obligations toreimburse the department.
    (d) Contracts between a prosecuting attorney, a private attorney,or a collection agency licensed under IC 25-11 and the department:
        (1) must:
            (A) be in writing;
            (B) include:
                (i) all fees, charges, and costs, including administrativeand application fees; and
                (ii) the right of the department to cancel the contract at anytime;
            (C) require the prosecuting attorney, private attorney, orcollection agency, upon the request of the department, toprovide the:
                (i) source of each payment received for a parental

reimbursement order;
                (ii) form of each payment received for a parentalreimbursement order; and
                (iii) amount and percentage that is deducted as a fee or acharge from each payment on the parental reimbursementorder; and
            (D) have a term of not more than four (4) years; and
        (2) may be negotiable contingency contracts in which aprosecuting attorney, private attorney, or collection agency maynot collect a fee that exceeds fifteen percent (15%) of theparental reimbursement collected per case.
    (e) A prosecuting attorney, private attorney, or collection agencythat contracts with the department under this section may, in additionto the collection of the parental reimbursement order, assess andcollect from an obligor all fees, charges, costs, and other expenses asprovided under the terms of the contract described in subsection (d).
As added by P.L.273-1999, SEC.122. Amended by P.L.145-2006,SEC.363; P.L.146-2008, SEC.670; P.L.182-2009(ss), SEC.389.

IC 31-40-1-7
Distribution of payments
    Sec. 7. Amounts received as payment of support or reimbursementof the cost of services paid as provided in this chapter shall bedistributed in the following manner:
        (1) If any part of the cost of services was paid from federalfunds under Title IV Part E of the Social Security Act (42U.S.C. 671 et seq.), the amounts received shall first be appliedas provided in 42 U.S.C. 657 and 45 CFR 302.52.
        (2) All amounts remaining after the distributions required bysubdivision (1) shall be deposited in the state general fund.
As added by P.L.273-1999, SEC.123. Amended by P.L.145-2006,SEC.364; P.L.146-2008, SEC.671.